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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: 100cfm who wrote (22246)4/5/2000 11:51:00 AM
From: StockHawk  Read Replies (1) of 54805
 
Re: >>Lessons Learned<<

That was a great post. The trouble with stock market lessons however, is that the market teaches different (sometimes opposite) lessons at different times. For example, this one:

>>Never chase a pre tornado stock, ie elon and cree.<<

That was a lesson some learned with RMBS, although those who held on were richly rewarded later (especially if we define "later" as two weeks ago). When CREE and ELON were flying, the lesson could have been - jump on a pre tornado stock. For a while that looked real smart.

The problem with stock market lessons is that what looks amazingly clear one day is often forgotten entirely on another day with a different set of circumstances (it is similar to the way I feel about chocolate cake before my first bite as opposed to after my second slice).

It is important not only learn lessons, but use them.

Perhaps each of us should prepare two lessons learned lists to pin above our computers. One would be things to do when the bull is raging (ie. don't chase) and it should be written when the market is in a steep correction. The second list of what to do in a bear phase might be better written during a strong leg (ie. see it as an opportunity to pick up some XYZ stock cheap)

Just a thought.

StockHawk
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